CALGARY, Aug. 29, 2013 /CNW/ - Axia announces that, as part of its
overall strategy for Alberta, continuity of services has been assured
for its public and private sector customers. Axia's agreement with the
Government of Alberta (GOA) has been extended from July 1, 2015 to June 30, 2018 (the Extension Period), on substantially the same terms as those governing the initial
10-year contract period.
Art Price, Chairman and CEO of Axia, commented "Together with other
initiatives, we are confident that this extension will lead to
long-term growth for Axia in Alberta. We are pleased that the GOA has
chosen to continue to work with Axia in maintaining and enhancing
Alberta's province wide open access next generation network and look
forward to continuing our long term relationship with the GOA for the
benefit of all Albertans. This network provides a compelling
alternative to traditional broadband service providers fostering
competition across the province. "
Concurrently, Axia and Bell Canada (Bell) have executed an amendment to their existing agreements, effective
July 1, 2015, to reflect standard commercial terms based on market
rates. During the Extension Period, Axia will pay to Bell approximately
$6M per year for current services which fee is adjustable for an
increase in services purchased.
About Axia
Axia owns, operates and sells services over fibre optic communications
infrastructure. Axia trades on the Toronto Stock Exchange under the
symbol "AXX".
This News Release contains forward-looking statements, including,
without limitation, statements containing the words "should",
"believe", "anticipate", "may", "plan", "will", "continue", "intend",
"expect", "estimate" and other similar expressions which constitute
"forward-looking information" within the meaning of applicable Canadian
securities laws. These statements are based on our current
expectations, estimates, forecasts and assumptions about the operating
environment, economies and markets in which we operate and are subject
to important assumptions, risks and uncertainties that are difficult to
predict. Examples of these statements would include those where Axia
forecasts its success and timing in winning new NGN business, the
timing of completion and estimated total costs of our networks, the
revenues and operating costs associated with these networks over time,
and Axia's ability to generate future cash flows and avail itself of
other financing alternatives given current market conditions. The
assumptions, risks and uncertainties that could cause actual results to
differ materially from the forward-looking information, include, but
are not limited to, changes in customer markets, changes in demand for
our services, our inability to deliver services in a timely and cost
efficient manner, technological change, general economic conditions and
other risks detailed from time to time in our ongoing filings with the
Canadian securities regulatory authorities, including those in our
Annual Information Form, which filings can be found at www.sedar.com. Given these assumptions, risks and uncertainties, readers are
cautioned not to place undue reliance on such forward-looking
statements. Unless otherwise required by applicable securities laws, we
undertake no obligation to publicly update or revise any
forward-looking statements either as a result of new information,
future events or otherwise.
SOURCE: Axia NetMedia Corporation
